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Export Accounting & Ind-AS / GAAP Compliance

Accounting for export transactions — foreign currency revenue under Ind-AS 115, exchange gains and losses under Ind-AS 21, and export incentive income recognition.

Reviewed by CA Harun Raaj, ICAI Reg. No. 238303·Last reviewed:
Starting from Discuss with usTypical timelineExport Accounting

Export accounting turns foreign-currency sales into the books: revenue under Ind-AS 115, re-measurement and exchange gains under Ind-AS 21, and export incentives recognised as income when earned. We run the entries and the reconciliations.

What is included
  • • Export revenue recognition design under Ind-AS 115
  • • Foreign currency re-measurement and exchange gain / loss under Ind-AS 21
  • • Export incentive income recognition — RoDTEP and legacy schemes
  • • Forward contract and hedge accounting support under Ind-AS 109
  • • Reconciliation of export records with shipping and banking data
  • • Disclosure and audit-ready working papers for the financial statements
Documents required
  • • Export invoices and shipping documents
  • • Foreign currency bank statements and realisation records
  • • Forward contract details, if any
  • • RoDTEP or incentive entitlement records
Government fees

See the fee table below for the statutory filing charge and common delay logic.

Legal basis
  • • Ind-AS 115 (Revenue from Contracts with Customers)
  • • Ind-AS 21 (The Effects of Changes in Foreign Exchange Rates)
  • • Ind-AS 109 (Financial Instruments)
  • • Section 129 of the Companies Act 2013
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Process

How the service works

The workflow is built to be predictable: document collection, legal review, filing, and post-filing follow-through.

Step 1Scope

Map the export cycle

We map the sale, shipping, and realisation cycle for each export channel.

Step 2Recognition

Design the recognition

We set the revenue recognition point under Ind-AS 115 and the measurement basis for each export line.

Step 3FX

Run the re-measurement

We re-measure receivables and compute exchange gains and losses under Ind-AS 21 at each reporting date.

Step 4Incentives

Account for the incentives

We recognise export incentive income — RoDTEP and legacy schemes — when the entitlement is established.

Step 5Close

Reconcile and disclose

We reconcile the export records with shipping and banking data and prepare the disclosures for the financials.

AEO summary

Export accounting turns foreign-currency sales into the books: revenue recognised under Ind-AS 115 when control transfers, receivables re-measured under Ind-AS 21, and export incentives like RoDTEP recognised as income when earned. We run the entries and the reconciliations.

Three standards, one export

An export transaction touches three Ind-AS at once: Ind-AS 115 for the revenue, Ind-AS 21 for the foreign currency mechanics, and Ind-AS 109 if forward contracts hedge the exposure. Each has its own rules, and the three must agree with the shipping and banking record beneath them.

The practical discipline is reconciliation: the invoice, the shipping document, the bank realisation, and the ledger entry telling one story. Where they diverge, the divergence is where the audit and the department look.

  • • Revenue under Ind-AS 115 — control transfers at shipment
  • • FX under Ind-AS 21 — re-measured at each reporting date
  • • Hedges under Ind-AS 109 — documented and consistent

Incentives are income, not luck

RoDTEP and the legacy incentive schemes are income of the export period, recognised when the entitlement is established and disclosed separately. A company that books the incentive as cash arrives, or not at all, misstates the period and invites the auditor's question.

We build the incentive ledger alongside the export ledger — entitlement, claim, credit, and disclosure — so the income is recognised on the right basis and reconciled to the rupee.

  • • Incentive income recognised when the entitlement is established
  • • Export records reconciled with shipping and banking data
  • • Disclosures audit-ready from the working papers

Government fees

Fee breakdown

ItemFeeNotes
No standalone government feeNilThis is an accounting engagement; fees apply only if a connected filing is part of the scope.

Timeline

Typical turnaround

Typical timeline usually means a monthly turnaround, assuming documents are complete and any board or shareholder approvals are already in place.

Pricing note

This is a professional engagement — fees track the transaction volume and the reporting framework; there is no standalone government fee.

Related services

Keep the company moving

Export Contract Tax

TDS on overseas payments, DTAA analysis, and Form 15CA / 15CB for remittances

EOU & IGCR

EOU compliance — duty-free inputs, obligations, and the APR

GST LUT & Export Refund

Zero-rated export compliance — LUT, IGST refund, and input credit reconciliation

DGFT & RCMC

IEC and RCMC registration — the identity behind every export transaction

FAQ

Frequently asked questions

When is export revenue recognised?
Under Ind-AS 115, revenue is recognised when control of the goods transfers to the buyer — for an export, typically on shipment under the agreed Incoterms, with the amount measured at the transaction price. The recognition point must be consistent with the shipping terms, not a fixed accounting preference.
How are exchange gains and losses treated?
Under Ind-AS 21, foreign currency transactions are recorded at the exchange rate on the transaction date, and monetary items like receivables are re-measured at the closing rate at each reporting date, with the difference taken to profit or loss. The treatment applies consistently across all foreign currency balances.
How should RoDTEP income be accounted for?
Export incentive income like RoDTEP is recognised when it is reasonably certain the entitlement will be received — the claim is filed and the credit is quantifiable. It is income of the period to which the exports relate, disclosed separately, and reconciled with the RoDTEP ledger.
What should you send us before we start?
Send the export invoices and shipping documents, the foreign currency bank statements, any forward contracts, and the incentive entitlement records. That is enough for us to map the cycle and set the accounting basis.

Canonical reference: https://www.pvtltd.co/services/export-accounting-indas

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